807 Phil. 74
MENDOZA, J.:
WHEREFORE, judgment is rendered ordering the respondents to solidarity pay the petitioners the following sums:Petitioner LBP filed its motion for reconsideration,[7] but it was denied in the RTC Order,[8] dated July 3, 2006.SO ORDERED.[6]
- Two Hundred Pesos per square meter for the two hundred eighty nine thousand seven hundred fifty two square meters.
- Three Hundred Thousand pesos as moral damages, shock, fright-wounded feelings.
- One Hundred Thousand pesos as atty.'s fees.
- The costs of suit.
Accordingly, the Decision dated 16 February 2006 is AFFIRMED with MODIFICATION that the award for moral damages, attorney's fees and cost of the suit are hereby DELETED. The records of the case is ordered REMANDED to the Special Agrarian Court, Branch 15, of the Regional Trial Court of Davao City, for further reception of evidence as to the date of the grant of the emancipation patents which shall serve as the basis for the computation of just compensation in accordance with the market-data approach pursuant to Republic Act No. 6657.Upon the denial of its motion for partial reconsideration,[11] the LBP filed this petition. In its Memorandum,[12] the petitioner raised this
SO ORDERED.[10]
Petitioner LBP avers that in fixing the just compensation for the subject properties, the guidelines set forth in DAR A.O. No. 1, Series of 2010, pursuant to R.A. No. 9700, should be applied.SOLE ISSUE
WHETHER OR NOT THE HONORABLE COURT OF APPEALS COMMITTED GRAVE ERROR OF LAW WHEN IT ORDERED THE REMAND OF THE CASE TO THE SAC FOR THE RECEPTION OF EVIDENCE AS TO THE DATE OF THE GRANT OF EMANCIPATION PATENT AND THE COMPUTATION OF JUST COMPENSATION IN ACCORDANCE WITH THE MARKET-DATA APPROACH DESPITE THE CLEAR MANDATE OF DAR A.O. NO. 1, SERIES OF 2010, IMPLEMENTING REPUBLIC ACT NO. 9700 AS TO THE FORMULA TO BE USED AND THAT THE RECKONING DATE IN COMPUTING JUST COMPENSATION IS JUNE 30, 2009.[13]
Section 17. Determination of Just Compensation. - In determining just compensation, the cost of acquisition of the land, the current value of like properties, its nature, actual use and income, the sworn valuation by the owner, the tax declarations, and the assessment made by the government assessors shall be considered. The social and economic benefits contributed by the farmers and the farmworkers and by the Government to the property, as well as the non-payment of taxes or loans secured from any government financing institution on the said land, shall be considered as additional factors to determine its valuation.With the enactment of R.A. No. 9700, the LBP agreed with the order of remand for the computation of just compensation conformably with the said law. A reading of R.A. No. 9700, however, reveals that the case still falls within the ambit of Section 17 of R.A. No. 6657, as amended. Section 5 of R.A. No. 9700, clearly provides that "previously acquired lands wherein the valuation is subject to challenge shall be completed and resolved pursuant to Section 17 of R.A. No. 6657, as amended."[16] Thus:
Section 5. Section 7 of Republic Act. No 6657, as amended, is hereby further amended to read as follows:This provision was further clarified by DAR A.O. No. 02-09, the "Rules and Procedures Governing the Acquisition and Distribution of Agricultural Lands under R.A. No. 6657, as amended by RA No. 9700," which provides that:SEC. 7. Priorities. - The DAR, in coordination with the Presidential Agrarian Reform Council (PARC) shall plan and program the final acquisition and distribution of all remaining unacquired and undistributed agricultural lands from the effectivity of this Act until June 30, 2014. Lands shall be acquired and distributed as follows:
Phase One : During the five (s)-year extension period hereafter all remaining lands above fifty (50) hectares shall be covered for purposes of agrarian reform upon the effectivity of this Act. All private agricultural lands of landowners with aggregate land holdings in excess of fifty (50) hectares which have already been subjected to a notice of coverage issued on or before December 10, 2008; rice and corn lands under Presidential Decree No. 27; all idle or abandoned lands; all private lands voluntarily offered by the owners for agrarian reform: Provided, That with respect to voluntary land transfer only those submitted by June 30, 2009 shall be allowed. Provided, further, That after June 30, 2009, the modes of acquisition shall be limited to voluntary offer to sell and compulsory acquisition: Provided, furthermore, That all previously acquired lands wherein valuation is subject to challenge by landowners shall be completed and finally resolved pursuant to Section 17 of Republic Act No. 6657, as amended: Provided, finally, as mandated by the Constitution, Republic Act No. 6657, as amended, and Republic Act No. 3844, as amended, only farmers (tenants or lessees) and regular farmworkers actually tilling the lands, as certified under oath by the Barangay Agrarian Reform Council (BARC) and attested under oath by the landowners; are the qualified beneficiaries. The intended beneficiaries shall state under oath before the judge of the city or municipal court that he/she is willing to work on the land to make it productive and to assume the obligation of paying the amortization for the compensation of the land and the land taxes thereon; all lands foreclosed by government financial institutions; all lands acquired by the Presidential Commission on Good Government (PCGG); and all other lands owned by the government devoted to or suitable for agriculture, which shall be acquired and distributed immediately upon the effectivity of this Act, with the implementation to be completed by June 30, 2012. (Emphasis supplied)
VI. TRANSITORY PROVISIONThus, all agrarian reform cases where the masterlists of agrarian reform beneficiaries had already been finalized on or before July 1, 2009 or where the claim folders had been transmitted to and received by LBP on or before the said date, the determination of just compensation should be in accordance with the pertinent DAR regulations, applying Section 17 of R.A. No. 6657.
With respect to cases where the Master List of ARBs[17] has been finalized on or before July 1, 2009 pursuant to Administrative Order No. 7, Series of 2003, the acquisition and distribution of landholdings shall continue to be processed under the provisions of R.A. No. 6657 prior to its amendment by R.A. No. 9700. However, with respect to land valuation, all Claim Folders received by LBP prior to July 1, 2009 shall be valued in accordance with Section 17 of R.A. No. 6657 prior to its amendment by R.A. No. 9700. (Emphasis supplied)
For the guidance of the bench, the bar, and the public, we reiterate the rule: Out of regard for the DAR's expertise as the concerned implementing agency, courts should henceforth consider the factors stated in Section 17 of RA 6657, as amended, as translated into the applicable DAR formulas in their determination of just compensation for the properties covered by the said law. If, in the exercise of their judicial discretion, courts find that a strict application of said formulas is not warranted under the specific circumstances of the case before them, they may deviate or depart therefrom, provided that this departure or deviation is supported by a reasoned explanation grounded on the evidence on record. In other words, courts of law possess the power to make a final determination of just compensation. (Emphasis supplied)Though the Court is fully aware that the subject properties have been taken by the government since 1972, it has no option but to affirm the CA order of remand to the RTC for the computation of the just compensation in accordance with Section 17 of R.A. No. 6657 because the basis for the RTC determination of just compensation was not clear.
1. Just compensation must be valued at the time of taking, or the time when the owner was deprived of the use and benefit of his property, that is, the date when the title or the emancipation patents were issued in the names of the farmer-beneficiaries.The Court is not unaware that the properties have been awarded to the farmer beneficiaries in 1978. Since then the Tapulados have not received any compensation for their lands. Remanding the case to the RTC would further delay the payment of just compensation due them. So as not to prolong the agony of the Tapulados, the RTC should conduct a preliminary summary hearing to determine the amount that the LBP is willing to pay and order the payment thereof to the Tapulados pendente lite. Thereafter, the RTC should proceed to conduct the hearing proper to determine the balance due to the Tapulados.
2. Just compensation must be determined pursuant to the guidelines set forth in Section 17 of R.A. No. 6657, as amended, prior to its amendment by R.A. No. 9700. Nevertheless, while it should take into account the different formulas created by the DAR in arriving at the just compensation, it is not strictly bound thereto if the situations before it do not warrant their application. In which case, the RTC must clearly explain the reasons for deviating therefrom, and for using other factors or formulas in arriving at a reasonable just compensation.
3. Interest may be awarded as warranted by the circumstances of the case and based on prevailing jurisprudence. In previous cases, the Court had allowed the grant of legal interest in expropriation cases where there was delay in the payment since the just compensation due to the landowners was deemed to be an effective forbearance on the part of the State. Legal interest on the unpaid balance shall be fixed at the rate of 12% per annum from the time of taking and 6% per annum from the finality of the decision until fully paid.[22]